Circle denies blaming SEC for shuttered $9B plan to go public

A spokesperson for USD Coin (USDC) issuer Circle has denied experiences that it blames the US Securities and Alternate Fee (SEC) over its failed $9 billion plan to go public in December.

The stablecoin issuer consultant was responding to a Jan. 25 Monetary Instances article which characterised Circle as having “blamed” the securities regulator for its “derailed” itemizing because of dragging its toes on the approval of a merger settlement.

Nevertheless, a Circle spokesperson clarified to Cointelegraph that was not the case and that it doesn’t maintain any blame over the SEC for the termination of its merger settlement.

“Circle has not and doesn’t blame the SEC for something associated to the mutual termination of our SPAC merger settlement with Harmony, and any statements on the contrary are inaccurate.”

Circle’s itemizing on the New York Inventory Alternate (NYSE) was pegged on them having the ability to mix with Harmony, an organization arrange by banker Bob Diamond through a Particular Function Acquisition Firm association, often known as a SPAC deal.

Nevertheless, based on the FT, Circle mentioned the merger didn’t be consummated because of the SEC not declaring the associated S-4 registration efficient in time, which might trigger the settlement to lapse on Dec. 10.

Circle’s spokesperson nevertheless referred to earlier statements made by the corporate in December, noting that “the deal merely termed out.”

Harmony had not publicly disclosed a purpose for the failed enterprise mixture, however filed an 8-Okay type with the SEC on Dec. 5  — the identical day the deal was introduced as terminated — which revealed that it was being delisted by the NYSE attributable to “abnormally low buying and selling value ranges.”

Associated: Courtroom to listen to oral arguments in Grayscale’s lawsuit in opposition to the SEC in March

Certainly, in a Dec, 5 tweet Circle co-founder and CEO Jeremy Allaire had nothing however optimistic phrases concerning the SEC, and famous that whereas it was disappointing that they had been unable to finish qualification in time it was nonetheless planning on turning into a publicly-listed firm.

2/ From my perspective, I imagine that the SEC has been rigorous and thorough in understanding our enterprise and plenty of novel features of this trade. This type of evaluate is important to finally present belief, transparency and accountability for main firms in crypto.

— Jeremy Allaire (@jerallaire) December 5, 2022

As Cointelegraph had beforehand reported, the deal was first introduced in Jul. 2021 at a valuation of $4.5 billion, earlier than doubling in Feb. 2022 when it was revised as much as $9 billion.